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Silicon Valley Occupancy, Rents Holding On

SAN JOSE-Bryan Friedman, senior vice-president and managing director of Grubb & Ellis' Silicon Valley office, and Ritchie Commercial Real Estate owner Mark Ritchie say the market is softening, but the sky isn't falling.

By Christina Chanes Nystrom and Brian K Miller | Updated on April 03, 2001

SAN JOSE-The current economic slump is punishing many sectors, but the Silicon Valley real estate market isn’t one of them… yet, say local real estate experts. Contrary to popular perception, Silicon Valley has less space for lease than may be perceived, says Bryan Friedman, senior vice-president and managing director of Grubb & Ellis’ Silicon Valley office.

“The overall vacancy rate in the San Jose area is about 4.7%,” says Friedman, “so it’s not exactly what I would call an open market. There is still several million square feet of sublease space available, but the idea of excess is just not the case.”

Ritchie Commercial Real Estate owner Mark Ritchie says the market is definitely softening, but the sky is not yet falling. “I guess the $64-trillion dollar question is whether or not the market is going to drop,” says Ritchie. “There is definitely an impact in the market and there has been a major correction in commercial rents but the business isn’t gone yet.”

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